HONG KONG—Smaller businesses are proving to be a weak link in China’s economic recovery as they struggle to fully bounce back from the effects of Covid-19.
Like the U.S., China has tens of millions of small and medium-size private businesses, including restaurants and shops, which form the backbone of everyday economic activity. They account for as much as 80% of urban jobs and at least half of China’s tax revenue., many are still trying to overcome weak consumer demand, rising operating costs and tight credit from banks that don’t want to sink more money into wounded companies.
Their struggles add a layer of uncertainty to China’s recovery. Many small businesses are reluctant to hire more workers, surveys show. Some say they are at risk of failing if conditions don’t improve substantially. Close to 19% of China’s small businesses shut down last year, compared with 6.7% in 2019, according to a study released in March by Tsinghua University involving more than 50,000 companies nationwide.
China’s PPP GDP is $24 trillion or $17k per person and widely disparate whereas the US PPP GDP is ? and per person?
ChinaRealTime someone somethings are always struggling
VECHAIN (VET) TO THE MOON
When China is struggling, everybody wins ! No sympathy at all , untill that CCP get the hell outta there..! Until then , every bad news from china is a good news !
Not a lot of sympathy for the country whose government allowed a pandemic to be looses on the world.
There is no pension provision in China. And this is not a problem for the Chinese. Do you really think that the problems of small businesses are so problematic? For them, it's like the weather outside, nothing more.
Do you think this is what people really need right now?